1. Introduction. I. SUPPLY AND DEMAND. 2. Supply and Demand. 3. Applying the Supply-and-Demand Model. II. CONSUMER THEORY. 4. Consumer Choice. 5. Applying Consumer Theory. III. THEORY OF THE FIRM. 6. Firms and Production. 7. Costs. IV. PERFECT COMPETITION. 8. Competitive Firms and Markets. 9. Applying the Competitive Model. 10. General Equilibrium and Economic Welfare. V. MARKET POWER AND MARKET STRUCTURE. 11. Monopoly. 12. Pricing. 13. Oligopoly and Monopolistic Competition. 14. Strategy. VI. FACTOR MARKETS. 15. Factor Markets and Vertical Integration. 16. Interest Rates, Investments, and Capital Markets. VII. UNCERTAINTY, MISSING MARKETS, AND LIMITED INFORMATION. 17. Uncertainty. 18. Externalities, Commons, and Public Goods. 19. Asymmetric Information. 20. Contracts and Moral Hazards.

This title is a Pearson Global Edition. The Editorial team at Pearson has worked closely with educators around the world to include content which is especially relevant to students outside the United States. Balanced Coverage of Both Traditional and Modern Theories: Basic core theory is covered thoroughly in the first half of the book, and a fully up-to-date, authoritative treatment of modern theories–such as industrial organization theories, game theory, transaction cost theory, information theory and contract theory–is included in the second half. Real-World Examples and Applications: Hundreds of examples and applications use real people, real companies, and real data to illustrate basic microeconomic theory. Providing valuable practical perspective, abundant examples and applications showcase the versatility of modern microeconomics. Solved Problems: Several Solved Problems in each chapter provide students with a step-by-step model for working out both qualitative and quantitative problems. Students get the opportunity to practice the method modeled in a series of related exercises at the end of the chapter. Cross-chapter Analyses: This feature is a crucial link between core theories covered in separate chapters, and gives students hands-on practice designed to sharpen their analytical and quantitative skills. What-if Policy Analysis: The book uses economic models to probe the likely outcomes of changes in public policies such as taxes, subsidies, barriers to entry, price floors and ceilings, quotas and tariffs, zoning, laws limiting diversification, pollution controls, licensing laws, and laws governing pensions.  Fresh Content for the Fourth Edition: Shifts in both Demand and Supply Curves: New material and a new Application in Chapter 2 show what happens to equilibrium prices and quantities if both supply and demand curves shift. Long-Run Market Supply Curve with Trade: Chapter 8 illustrates why the import supply curve is horizontal for small countries using a real-world cotton example. Behavioral Economics: Two new sections discuss major issues in behavioral economics. Chapter 11 examines the role of bandwagon effects on monopoly pricing over time, while Chapter 16 discusses the importance of time varying discounting in explaining procrastination and in avoiding environmental disasters. Auctions: Chapter 14 features a new section on bidders’ strategies in auctions.  In addition, two new Applications discuss eBay auctions. New Examples: Recent events, like the monopoly pricing of the iPod® and analysis of the Harry Potter and the Prisoner of Azkaban™ DVD to exemplify price discrimination, illustrate core microeconomic concepts. Hundreds of New Problems and Questions: Exercises: This Fourth Edition boasts over 50% more exercises over the previous one, bringing the total number to 617–averaging over 32 per chapter.  Of these, 39% are based on recent newspaper articles, Applications in the chapter, and other real-world issues and events. Verbal Answers Using Slides: Each chapter now includes three audio-enabled PowerPoint® slides authored by James Dearden of Lehigh University. With these visual, verbal aids students hear Dearden talk through the solution at the same time they watch him draw out the answer on screen. A large number of these exercises are based on real-world events, many torn from right from the headlines, and an even larger majority of them are multipart exercises. This innovative learning tool is available online at www.myeconlab.com/perloff. Additional Learning Tools: Margin Note

Fresh Content for the Fourth Edition: Shifts in both Demand and Supply Curves: New material and a new Application in Chapter 2 show what happens to equilibrium prices and quantities if both supply and demand curves shift. Long-Run Market Supply Curve with Trade: Chapter 8 illustrates why the import supply curve is horizontal for small countries using a real-world cotton example. Behavioral Economics: Two new sections discuss major issues in behavioral economics. Chapter 11 examines the role of bandwagon effects on monopoly pricing over time, while Chapter 16 discusses the importance of time varying discounting in explaining procrastination and in avoiding environmental disasters. Auctions: Chapter 14 features a new section on bidders’ strategies in auctions.  In addition, two new Applications discuss eBay auctions. New Examples: Recent events, like the monopoly pricing of the iPod® and analysis of the Harry Potter and the Prisoner of Azkaban™ DVD to exemplify price discrimination, illustrate core microeconomic concepts. Hundreds of New Problems and Questions: Exercises: This Fourth Edition boasts over 50% more exercises over the previous one, bringing the total number to 617–averaging over 32 per chapter.  Of these, 39% are based on recent newspaper articles, Applications in the chapter, and other real-world issues and events. Verbal Answers Using Slides: Each chapter now includes three audio-enabled PowerPoint® slides authored by James Dearden of Lehigh University. With these visual, verbal aids students hear Dearden talk through the solution at the same time they watch him draw out the answer on screen. A large number of these exercises are based on real-world events, many torn from right from the headlines, and an even larger majority of them are multipart exercises. This innovative learning tool is available online at www.myeconlab.com/perloff. Additional Learning Tools: Margin Notes: Major phrases are defined in both the text and highlighted in the margin.  These notes clearly link concepts to Applications, Solved Problems, and other material with end-of-chapter exercises. End-of-Chapter Exercise Signals: New signposts help students navigate end-of-chapter problems.  An asterisk (*) indicates an answer is available at the end of the book.  An A means it is explicitly linked to an Application, a Solved Problem, or some other material within the chapter. Exercises with a C may require the use of calculus to solve.  A W prompts students to get on the Web for audio-enable PowerPoint answers at www.myeconlab.com/perloff. New Applications: Over 75% New or Updated: The Fourth Edition is replete with current applications from the flu vaccine shortage to the effect of the movie Sideways on the demand for wine. Extension of Applications: Nearly half of the 66 Solved Problems in the Fourth Edition are linked to adjacent applications. Five Cross-Chapter Analyses combine Applications with Solved Problems, and look at topics like outsourcing and the World Trade Organization. Up-to-the-minute Data: The Fourth Edition is infused with new real-world data such as a recent study of whether it pays to go to college, fresh estimates of production and cost functions, and a new table on actual measures of consumer surplus. This package includes MyEconLab®, an online homework, tutorial, and assessment program designed to work with this text to engage students and improve results. Within its str